Business managers should never underestimate the importance of getting compensation right. In any industry, it can be a delicate thing to find a balance between keeping employees motivated and keeping profits high. When you are making compensation plans, you should always consider how these plans may affect your company’s public reputation.
In an ideal world, you would only worry about creating how your compensation levels are perceived by stakeholders in your company. However, we live in an era of increased corporate scrutiny. In spite of your best efforts to maintain confidentiality, it is always possible that your company’s compensation details may become public knowledge. If and when this happens, you will have to worry about receiving a backlash in the court of public opinion. At all costs, you must avoid feeding the perception that your company’s employee compensation is stingy or miserly. Though this type of backlash might not affect your bottom line at first, public castigation can have a pernicious, slow-burning effect on your corporate fortunes. Saddled with a reputation for stinginess, you may have difficulties attracting the best and brightest candidates to fill positions in your company. Business compensation consulting (BCC) is a discipline devoted to avoiding the pitfalls associated with ill-considered corporate policies.
In the highly competitive world of business, many people believe the unfounded idea that seeking a consultant is nothing more than a sign of weakness. This attitude is a holdover from less enlightened times. In previous decades, business leaders often tried to pretend they were totally independent and able to act with complete autonomy. Of course, total autonomy is impossible unless you operate a one-person company. Realistically speaking, managers who fail to seek out needed BCC are apt to experience professional failure. It seems clear that public officials must work harder to create a more business-friendly environment. Although the economy is currently fairly sound, there is no certainty that this positive situation will continue. Throughout many different industries, hard-working professionals are held back by onerous regulations. A growing bipartisan consensus holds that regulatory reform is crucial to keep our economic recovery strong for the long term. Public officials should also work to help companies maintain confidentiality.
In the event that you end up patronizing a well-regarded BCC service, it is virtually guaranteed that you will be in good hands. Typically, these firms are comprised of knowledgeable professionals who have learned the art of compensation policy through long, hard experience. By working closely with these consultants, you can develop compensation policy that keeps key employees happy and loyal. Never make the mistake of thinking that you can maintain employee loyalty without making sacrifices. Though you might get away with cavalier compensation policies for a while, your best employees will ultimately move on if they don’t feel their pay rates are reasonable. Compensation management is one aspect of human resources that is overlooked far too often. Whether you use compensation consulting services or choose to soldier on alone, artful compensation design is a task you can’t afford to ignore.